The receivers of Southern Cross Forest Products have sold the
Thames operations for an undisclosed sum and further
redundancies on the cards.
Combined South Island and North Island redundancies may be
about 250. Since the ANZ bank placed Southern Cross in
receivership in March, with debts of about $57 million, about
180 Otago staff in Balclutha, Milton and Mosgiel have lost
Receiver Korda Mentha yesterday announced the Thames
operations' sale to Profiles Woodproducts, of Thames.
Settlement is due next month.
While no Thames staff have yet been given notice, receiver
Brendon Gibson said redundancies would result when the Thames
green-mill and dry-mill operations were restructured into
First Union general secretary Robert Reid understood once the
mill changed hands on July 18, and workers were paid as
preferential creditors, the number of Thames jobs would fall
from 142 to about 70-80, as the new owner reduced operations
from two shifts to one.
Aside from Southern Cross owing the ANZ $39 million and UDC
Finance $7.2 million, about 34 unsecured creditors are owed a
further $10.8 million.